Ampol defers 2025 refinery maintenance, margins up in October
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The news: Fuel refiner and retailer Ampol completed maintenance at its Lytton refinery in November but has deferred another stop scheduled in 2025, while refining margins were up in October.
The numbers: The company said Lytton Refiner Margin for October increased to USD6.20 ($9.54)/barrel following the completion of a turnaround and inspection in September, with recent refinery production run-cuts across the world, leading to further improvements in benchmark Singapore product cracks.
Following repairs to the Fluidised Catalytic Cracking Unit (FCCU) regenerator during November, total production for 2024 is expected to be 5.2 billion litres, while net capital expenditure for the year is now expected to be $650 million.
The context: Ampol said following an independent assessment of the condition of the FCCU, the turnaround and inspection maintenance that was previously scheduled for 2025 will be deferred to the first half of 2026.
Meanwhile, performance has remained broadly consistent with convenience retail continuing its strong performance from the first three quarters of 2024.
New Zealand has seen a more challenging economic environment, the fuels and infrastructure (F&I) Australia business performance in the second half was affected by the reduced refinery production, while F&I International continues to see limited physical sales and value creating opportunities.
The company said it is committed to an initial $50 million cost reduction target for the 2025 financial year and is pursuing additional opportunities to improve productivity and simplify its business.
The source: ASX announcement
